Strategy& – Hydrogen Ecosystem, 2024

Clean hydrogen is seen as a key solution for decarbonizing industries such as steel, chemicals, and long-haul transportation, as well as for use in aviation and shipping. National and regional strategies, such as the EU's goal of using 20 million tons of clean hydrogen by 2030, reflect the importance placed on hydrogen in reducing greenhouse gas emissions. Despite these goals, progress in the global market has been slow, with only a small fraction of announced projects reaching the final investment decision or construction phase. For example, in Europe, around 120 GW of electrolyzer capacity will be necessary to produce 10 million tons of renewable hydrogen by 2030, but current capacity additions are falling short of the required amount. Most clean hydrogen projects are still in the concept or demo phase, with only a small portion reaching the construction stage. The slow progress highlights the challenges in scaling up clean hydrogen production to meet ambitious climate targets.